The Bidding War Continues: Blackstone Comes Back With Nearly $1.6 Billion Takeover Offer for Hipgnosis Songs Fund

Let the bidding war continue: After Concord installed an enhanced deal of $1.51 billion for Hipgnosis Songs Fund (HSF)– and started buying shares from financiers– Blackstone has actually formally returned with a $1.57 billion quote.

Blackstone (the bulk owner of Hipgnosis Song Managementand HSF officially revealed this most current all-cash deal, to be carried out particularly through a takeover, today. Made through Blackstone’s recently formed “Lyra Bidco,” the proposition would pay the openly traded tunes fund’s financiers $1.30 per share.

And as Blackstone/Lyra stressed, that’s 4 percent above Concord’s previously mentioned modified deal and near 50 percent more than HSF stock’s per-share rate before the acquisition fight started.

Naturally, HSF’s revamped board has actually all advised that investors accept the almost $1.6 billion deal over Concord’s previous quote. Must the more recent offer go through– Hipgnosis stock is trading at roughly $1.32 per share, indicating that financiers may be counting on extra quotes yet– Blackstone would likewise presume HSF’s large financial obligation center.

“The Board is pleased to all advise this US$ 1.6 billion Offer for Hipgnosis from Blackstone,” HSF chair Robert Naylor stated in a declaration. “Since we began our tactical evaluationwe have actually been plainly concentrated on taking a look at all the choices to provide investor worth. We are pleased that, following competitive interests in getting Hipgnosis, our financiers now have an opportunity to right away understand their holding at an increased premium.”

Relating to the distinctions for HSF in between inking a handle Concord and Blackstone, the latter’s Hipgnosis Song Management has a “call alternative” that would seemingly allow it to get the tunes fund’s holdings in numerous circumstances.

Public remarks highly recommended that triggering this call alternative– and potentially beginning a legal conflict– might be in the cards for Blackstone. To be sure, it was just this previous Thursday that provided a terse declaration from the SESAC owner: “Blackstone highly recommends Hipgnosis investors to take no action and is considering its choices,” the entity stated“A more statement will be made in due course.”

That due-course statement has actually gotten here, and needless to state, deciding on an offer here would avoid a lengthy courtroom conflict. In addition, Concord, currently geared up with a robust group, approximated that it would end 55 to 65 percent of existing functions for Hipgnosis’ 34 staff members; Blackstone/Lyra, on the other hand, “has no objectives to minimize headcount of the Hipgnosis Group.”

Post-acquisition, Blackstone/Lyra likewise “plans to line up the conditions of work of Hipgnosis’ management with those in location in regard of other Blackstone portfolio business,” besides “completely” securing “the existing legal and statutory work rights of all Hipgnosis Group workers,” per the takeover-proposal text.